Anti-flip control | No impact on licensed contractors

New rules for buying and selling real estate transactions (Flip Real estate announced Thursday by the federal government) FlipExperts say.

Posted at 7am

Isabel Dube

Isabel Dube
press

From 1er Profit from residential real estate purchased and resold within 12 months in January 2023 is considered business income.

“In my daily life, it doesn’t affect me at all,” says real estate investor Mactar Mbaye, who has three projects underway, on the phone.


PHOTO PHILIPPE BOIVIN, press

Mactar Mbaye, expert Flip real estate

We are already working with the company and have a contractor license from RBQ [Régie du bâtiment du Québec]..

Mactar Mbaye, expert Flip real estate

Mactar Mbaye and his business partners have been identifying and purchasing properties that require a great deal of love for five years. It was left as an inheritance and patrolled the web, whether it was a home sold by real estate or another home, such as in the Outaouais area.

Expert Flip Discovered on a Canadian television channel specializing in refurbishment of HGTV Canada and become part of the show Hoder House Pinball Machine, Broadcast from May 19th. He never encouraged anyone unfamiliar with the world of buying and selling to break all the rules.

“What’s very surprising about the new rules is Flip Like me, these are the ones we already knew and support Mactar Mbaye. the play, It’s a commercial activity and it’s commercial because we are professionals, building contractors and real estate investors. »»

The important thing is the intention

It all depends on intent, explains tax attorney Richard Damour. He says that if the purchase intent is resale, the outcome of the sale is not capital gains, but rather business revenue.

According to experts, even properties that were bought and sold with only a few modifications are now in business income.

What Ottawa has done with the new steps is to inform people who are unaware of this. But that doesn’t change what the law has provided so far.

Richard Damour, Tax Lawyer

“We’re saying,’Oh! Think properly!’ We’re taking steps that already exist, but aren’t well known,” says the lawyer.

RBQ license required

Canadian to make Flip Ivan Kurnoyer, president of the Quebec Real Estate Investors Club and author of the best-selling book, claims that part-timers are also unaffected. Flip..


Photos from the Quebec Real Estate Investor Club website

Ivan Kurnoyer, President of Quebec Real Estate Investors Club

“Because you can’t remodel or work in a house you don’t live in,” the expert recalls. Requires an RBQ contractor license. If you do not have a license, the partner who owns 50% of the company’s voting rights must absolutely have one. »»

The new rules are aimed at Canadians who buy real estate, resell it a few months later, and resell it at a higher price to take advantage of the rising prices. The federal government says trends that can lead to unreasonable rises in home prices. Many have declared that capital gains are only taxed at 50%, but this gain will be taxed at 100% as business income next year.

Tax exemptions may apply if people are forced to move due to death, disability, divorce, birth of a child, or new employment.